Follow WallStreetBlips on Twitter
The Leper list
FT Alphaville —
... is hoping to achieve with its “Bottom Rung” - a new quarterly publication that will flag US companies at risk of default. Zero Hedge, which has obtained a copy of the Leper List , reckons it could be a shot at absolution after sleepwalking through the credit crisis. Anyway, there are 283 companies on the inaugural list, including, unsurprisingly, most of the US motor industry - Chrysler, Ford Motor Company, General Motors - and a couple of airlines - UAL Corporation and US Airways. Casino groups also feature prominently - Golden Nugget, Harrah’s Entertainment, MGM ...
Tuesday links: the bottom rung
Abnormal Returns —
... What companies are showing up on Moody’s “The Bottom Rung” list of troubled credits? (WSJ.com also FT Alphaville, Zero Hedge)
The prospects for profits in the quarter from Citigroup (C) is widely cited for today’s stock market rally. Other items to the contrary. (24/7 Wall St., naked capitalism, The Stash, Atlantic Business)
What is ...
Moody's "Bottom Rung" List Implicates 283 Potential Dead Man Walking Companies
Fund My Mutual Fund —
... Below is the list of names - if you want more comprehensive coverage ZeroHedge has the full document with the nasty details. One of our holdings is down there - James River Coal (JRCC); but that is more of a proxy play on "China will save the whole world, buy commodities" rather than any adoration for the company. ...
leveraged loan deleveraging
Decline and Fall of Western Civilization —
... The bottom line is that all those who claim that deleveraging is done, have no idea what they are talking about. While the Moody's Death Watch list accounts for a little over $200 billion, thanks to the greed of packaging and securitizing leveraged loan, the world is facing near half a trillion in defaults as the market for CLOs disappears, and the only bidders remaining are those laser-focused on specific names, and usually with Investment Grade ratings. And the last thing to keep in mind is that CLOs are not alone: a default wave among the CLO pool will promptly drag with it ...
